As gold continues to suffer amid a strong U.S. dollar rally and chatter of Federal Reserve rate hikes, TD Securities says the metal is fully in a “rain” period but hopeful for a “rainbow to emerge soon.” “Today was the lowest PM fix since Nov 2014 and it seems very likely gold now targets $1130 and then $1100,” says Steve Scacalossi, head of sales of global metals at the bank. “The shorts are in full command with little reason for a rally other than the usual dovish Fed inspired short covering rally,” he adds. However, it is not all bad news for the metal as Scacalossi says Asian demand has been strong and physical bars are starting to move again in the region. “Gold now needs to form a convincing base to see a rebound.”
